For those who do not know about it these are special ( and expensive at about 8 or 9%) second mortgages granted while you get rid of your house. You temporarily have 2 gaffs .
Ladderista spots ‘must have house’ , simply georgeous fell in love stuff .
Ladderista has apartment worth €250k and outstanding mortgage of €150k , house costs €350k .
Ladderista gets bridging loan , this is swapped with mortgage on existing …although it is a mortgage of sorts.
Therefore Ladderista temporarily owes bank €150k BRIDGING on original gaff and €350k mortgage on new gaff . Total €500k .
Ladderista sells apartment , gets the €250k . Bridging is paid off in full and the €100k goes into new house mortgage .
Ladderista now has mortgage of €250k on house, only .
EXCEPT , **The banks have largely stopped giving bridging finance save where the bridging is 25% or less of the value of the original property.
Logjam on the Ladder. Whoops. Better sell first .